PAN Penalty

Without PAN Card, one is not allowed to conduct any of the financial transactions in India. Even you have to open a bank account of a minor, you have to submit a PAN card as legit proof of your identity. In case you are having no PAN Card, or having more than one PAN Card, according to the Income Tax department of India, you become liable to pay PAN Penalty.

What is PAN Penalty for having multiple PAN cards?

As per Section 139A (7) of the Income Tax Act- No person who has already had one PAN Card number can apply for a new one. In case anyone is found holding multiple PAN Cards, then according to Section 272B of the Income Tax Act, a fine of Rs 10,000 will be imposed upon the failure of compliance with Section 139A of the Income Tax Act 1961.

Moreover, if any person when asked to show her or his Permanent Account Number and quotes false Permanent Account Number shall also be fined by the Assessing Officer.

Scenarios of having a duplicate PAN Card

Filing of multiple applications: If anyone has filed a dual PAN application, it may result in the creation of multiple PAN numbers. To avoid being in such a situation, one should keep patience and wait for at least two weeks of applying for a PAN Card rather than reapply and own multiple PAN Cards. Another reason is miscommunication between PAN Card applicants and PAN Card issuers.

Making changes in PAN Details: Changing the name has become the common reason for getting multiple PAN numbers. Some people reply for a new PAN Card without cancelling the old PAN Card. You have to make changes to your existing PAN Card be the change is regarding the name, address, or date of birth. There is no need to apply for a new PAN Card. One of the most common examples is of a newly married woman, who wants to update her surname and address. Rather than updating PAN Card, she went to apply for a new PAN Card without cancelling the old Card.

Malicious intent – Some people are applying for multiple PANs to make tax invasions and cheat the government or save money. These are blatant violations and will attract a penalty.

So, all the individuals who are holding more than one PAN must immediately surrender the additional/duplicate PAN to avoid paying heavy penalties. Surrendering a duplicate PAN is quite easy with individuals having an option to surrender it either manually or online.